Commerce Accountancy

Accounting Principles and Practices

2,416 Questions

Accounting principles and practices involve the preparation of trial balances, ledgers, and bank reconciliation statements. This area tests your knowledge of fundamental accounting concepts and routine business transactions. It is a core section in commerce exams and various competitive tests.

Ledger accountsTrial balance preparationBank reconciliation statementAccounting conceptsPrimary books of accounts

Accounting Principles and Practices Questions

Multiple choice

Trial balance is prepared for

  1. locating errors of complete omission

  2. locating errors of principle

  3. clerical errors

  4. All of the above

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Only clerical errors can be located by trial balance differences.

Multiple choice

Posting in accounting means

  1. journalising

  2. writing the transaction in the ledger

  3. totalling

  4. balancing

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct; from journal entries, ledgers are written with transactions accountwise.

Multiple choice

All of the following have debit balance, except

  1. loan to contractor

  2. goodwill

  3. wages outstanding account

  4. trade receivables account

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct; wages outstanding is due within a short period. Hence, it does not show debit balance.

Multiple choice

Which of the following financial statements is the most important financial statement of the company that shows its position of assets and liabilities on a particular date?

  1. Balance sheet statement

  2. Profit and loss account statement

  3. Account receivable statement

  4. Cash transaction statement

  5. Callable statement
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This financial statement is the most important financial statement of the company that shows its position of assets and liabilities on a particular date.

Multiple choice

Which of the following accounting self evident statements implies that a business unit is separate and distinct from the person who own or controls the business?

  1. Money measurement concept

  2. Accounting period concept

  3. Bussiness entity concept

  4. Convention of materiality

  5. Account receivable statement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This accounting self evident statement implies that a business unit is separate and distinct from the person who owns or control the business.